What will the feed business look like in 2025? That was the central theme at the symposium on 6 March 2015, organised by the Feed Design Lab and attended by partners and experts active in the feed industry and livestock farmers. Adifo also took part in the symposium as an FDL partner.

The conclusion of the brainstorming sessions in a nutshell: Pressure on raw materials will increase and the sector faces major challenges. Knowledge sharing and cooperation with chain partners are necessary for a sustainable feed industry. In an effort to cooperate more effectively towards a healthy future, dialogue with retailers and consumers is essential.

The following objective was set for the FDL symposium: To understand the objectives that must be achieved to make the feed industry sustainable in terms of raw materials, technology, health and welfare, the environment and efficiency.

Feed conversion down and health up

In an initial brainstorming session we discussed what we must do to reduce feed conversion and carbon footprints and improve the health of man, animal and ecosystems. Feed conversion is currently a commonly used KPI. A 20% reduction by 2025 is indicated by a number of parties as a real objective. Participants also indicated that there are variants to be considered that steer more towards sustainability, such as protein conversion, energy conversion and feed costs per kg growth. The carbon footprint is currently not yet used as a KPI, mainly because there is no unambiguous definition of what it does or does not include (e.g. methane). According to a number of parties, a reduction of 20% is possible by saving energy, closing circuits and using new raw materials, but this then requires an incentive from the market. Up to now health has not been adequately measurable ( a better health is also corelated with a better feed conversion). As a KPI this aspect has not been sufficiently examined, and cooperation between chain partners is necessary. Again, variants are desirable, e.g. manure quality and gut flora. Further research into knowledge of feed conversion versus health is necessary and requires cooperation between chain partners.

Yields up. Costs and risks down

In a second brainstorming session, four objectives were established:

1. Increase yields. Various topics were discussed here, including upgrading by-products, improving digestibility, the use of new raw materials, increasing the resistance of the animals, etc.
2. Reduce costs. This can be done, for example, through energy-efficient installations, the optimal reuse of waste flows, optimal logistics, knowledge sharing through joint R&D, joint purchasing, energy-driven processes, etc.
3. Reduce risks. Data on health can be shared, it would be better for farmers not to do their own mixing because of possible contamination issues, cooperation within the chain is possible to manage risks, and preventive measures can be taken (e.g. noise, odour, dust reduction) to avoid complaints.
4. Boost the image: Improve consumer confidence through transparent communication on quality, health/welfare and conversion (price). Compound feed must be produced with a longer shelf life instead of to order.

What role will Adifo play in the feed industry of the future?

The various brainstorming sessions led to a concrete action list for the different parties. Adifo above all wants to play a role in the area of data links, information exchange and knowledge sharing.

The growing demand for ingredients for food and feed products puts a lot of pressure on the ingredient market and this will further increase in the future. This will result in even higher ingredient prices, which means that taking the right purchasing decisions on the short and long term becomes a key factor in a feed company’s success. The advanced "MultiPlant-MultiPeriod" optimization tools  -provided by Adifo only-  allow to take the right purchasing decisions and allocate the purchased ingredients cost efficiently between different factories and time periods. As such, by using Adifo’s optimization tools, feed companies are sure to make optimal use of the scarce resources, whilst keeping on eye on the financial aspects.

Closer co-operations and links between quality and production are also essential.  There is a clear trend towards a better follow-up and management of quality data.  Adifo's BESTMIX Quality Control (lab information management system) is deployed by a growing number of companies.

Together with its partner network, Adifo wants to make this knowledge available to its customers. A concrete example of this is the FaaS (Formulation as a Service) platform, which allows optimal transfer of knowledge and cooperation between all parties in the value chain via the cloud. This platform was launched three years ago, and is highly valued worldwide. The latest development is the “FaaS: One Tool - Multi Model” concept. This tool not only makes it possible to calculate rations according to the familiar standard models for cattle (such as CNCPS, NRC, Feed into Milk, etc.), but also to set up a fully independent model. In addition, FaaS can also be used to develop/optimise feeds for pigs and poultry. This offers the advantage that each company can set up its own optimal animal model for different species in a central database and can share this knowledge via the cloud with customers, vendors and with the formulation division of the feed mill. Feed formulation and ration calculation are thus made available in a single tool.

Source:  SYMPOSIUM DIERVOERBEDRIJF 2025Rapportagewerksessie6 maart, FDL , Tebodin, Venlo| 6 Maart2015